Preliminary communication
https://doi.org/10.2478/zireb-2019-0011
Is Currency Appreciation or Depreciation Expansionary in Kosovo?
Yu Hsing
; Southeastern Louisiana University, Hammond, LA, USA
Abstract
Applying an extended IS-MP-AS model (Romer, 2000), this paper shows that real depreciation of the euro raises real GDP in Kosovo and that a lower real lending rate in the euro area, a higher real GDP in Germany, a lower real oil price, or a lower expected inflation rate would help increase real GDP. More government deficit spending as a percent of GDP does not affect real GDP.
Keywords
Real depreciation or appreciation; Budget deficits; Interest rates; Oil prices
Hrčak ID:
220481
URI
Publication date:
28.5.2019.
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